Financial Institutions Encouraged to Work Together at Zimswitch Seminar, Despite Ongoing Concerns over Money, Fees, and Regulations

In the picturesque town of Nyanga, the Zimswitch Digital Connect Symposium was recently held, bringing together key players in Zimbabwe's banking sector to discuss the growth of the digital payments ecosystem.

One of the main concerns raised was the high transaction fees and IMTT charges that come with digital payments, leading many to prefer keeping their revenue in cash. This sentiment was echoed by a client's perspective, highlighting the need for digital payments to offer more value than the costs and headaches they currently bring.

The symposium also acknowledged that until fees come down, transaction experiences improve, and internet access expands, it will be challenging to attract people away from cash. Inconsistent or expensive internet connectivity is a significant barrier to adopting digital payments in Zimbabwe, with around 70% of the population still relying on cash for their daily needs.

The consensus at the symposium was that Zimbabwe's banks need to collaborate to overcome these challenges and grow the digital payments ecosystem. The main focus of the coordination is on technology, pricing, interoperability, and incentives that are beneficial for everyday Zimbabweans.

However, collaboration among banks is complicated due to factors such as competition, policy, costs, and customer behaviour. The most important banks in Zimbabwe involved in developing digital payment systems and facing costs and challenges with digital payments are not explicitly named in the provided search results. However, leading Zimbabwean banks typically engaged in digital financial services include CBZ Bank, Stanbic Bank Zimbabwe, and FBC Bank, which are key players in the country's banking sector and digital payments development efforts.

The symposium also addressed the growing discussion about moving towards a ZWG-only economy, which could potentially disincentivize digital growth if confidence and liquidity do not improve. The consensus has expanded to include the need for coordination among Zimswitch, regulators, and financial institutions to address the challenges in the digital payments ecosystem.

The upcoming sessions at the symposium will focus on digital identity, KYC, and the Action Design Lab, where industry players are expected to provide actionable next steps. The client story shared at the symposium emphasized the need for digital payments to offer more value than the costs and headaches they currently bring to attract people away from cash. Despite years of innovation, digital transaction volumes have decreased over the last five years in Zimbabwe.

In conclusion, while there are challenges in Zimbabwe's digital payments ecosystem, the symposium highlighted that solving these challenges alone cannot be achieved by a single bank. Collaboration and coordination among banks, regulators, and industry players are crucial to driving the growth of digital payments in Zimbabwe and improving the lives of everyday Zimbabweans.